It is not often that a gold mining company can be called a growth company. Generally, they are “juniors” or “development stage” in nature. In some cases, however, the company decides to make a break-out and run with a known set of reserves and resources. Catching these companies is where the real dollars can be found. This does not happen often but if one pays attention and can act quickly, profit will most likely follow.
NovaGold Resources Inc., a gold, silver, and lead exploration and development mining company, works to find and exploit basic minerals primarily in Alaska and British Columbia. The company controls several leases but most importantly 50% of North America’s two largest and most productive pure gold mines.
The company can be valued in several ways with each being more remarkable than the former. Its 15.3 million oz. in reserves and 5.3 million oz. of inferred resources make the company attractive to be sure. In this respect, the company even goes so far as to indicate that every 10 shares of the company’s stock is worth 1.7 oz. of gold. Further, this pace is not slowing as it indicates that it has and is consistently adding 3 million oz. of reserves to its inventory.
The general initiative of the company to maintain its development flow is another reason to consider NovaGold as a solid investment in the mining sector. In its most recent move, it wanted to begin work on a development project while expanding its output and mining activities at its Dolin Creek, Galore Creek and Rock Creek properties. To accomplish these tasks it issued over 13 million shares at $5.50 (today $7.70) and had little trouble doing it. It might also be noted that much of the issuance was to a Soros investment group. It is not often that a gold mining company of this scale and caliber begins to make a move at relatively lower price levels.